YAHOO [BRIEFING.COM]: For the
most part, the stock market lacked direction this session, but it still managed
to put together a late advance that helped it settle near its session
high. That helped stocks book a modest gain and close near fresh 52-week
highs.
Financials were a primary
source of support this session. The sector spiked 1.7% as diversified banks
climbed 2.6%. European banking giant Barclays (BCS 19.34,
+1.01) was especially strong after analysts at Deutsche Bank picked the name as
one of its top choices for European bank stocks.
Leadership from financials
helped pull stocks up from negative territory a few times this session.
Technical support also helped provide a base from which stocks could rebound.
The S&P 500 set its
session low amid a knee-jerk reaction to the midmorning release of some
disappointing November pending home sales numbers. Pending home sales for
November decreased 16.0% month-over-month, which was a far steeper slide than
the 2.0% decline that many had forecast. The disappointing data overshadowed
news that factory orders for November were up a stronger-than-expected 1.1%
(consensus called for a 0.5% increase).
There were only a few
corporate headlines this session. Among them, Kraft (KFT
28.77, +1.34) announced that it has opted to sell its North American pizza
business to Nestle in order to offer cash as part of its bid for Cadbury
(CBY 49.73, -1.92). Meanwhile, Kraft's proposal to issue stock to help it
acquire Cadbury received criticism from Berkshire Hathaway's Warren Buffett,
who suggested that Kraft's shares constitute an expensive currency. Berkshire
reportedly owns some 9% of Kraft's outstanding shares.
Automaker Ford
(F 10.96, +0.68) had a strong session, thanks to news that its sales for
December surged approximately 33%, which is far better than the 13% increase
that many on the Street had expected.
Though stocks were able to put
together a strong finish, a rebound by the dollar weighed on things a bit. The
greenback had been down modestly ahead of the opening bell, but rallied to finish
with a 0.2% gain against a basket of foreign currencies.
The dollar's move also
dampened investor appetite for commodities. Still, the CRB Commodity Index had
been on its way toward a late session gain of its own, but finished flat
instead.
Support for Treasuries took
the benchmark 10-year Note up 15 ticks and its yield back below 3.8%. The
Note's yield now stands near 3.75%, which is its lowest level in more than one
week.
Advancing Sectors: Financials (+1.7%), Energy (+0.8%),
Materials (+0.5%), Consumer Discretionary (+0.5%), Industrials (+0.4%), Telecom
(+0.2%)
Declining Sectors: Utilities (-1.2%), Health Care (-0.6%),
Consumer Staples (-0.1%)
Unchanged: Tech DJ30 -11.94 NASDAQ +0.29 NQ100 +0.1% R2K -0.3%
SP400 +0.3% SP500 +3.53 NASDAQ Adv/Vol/Dec 1197/2.84 bln/1505 NYSE Adv/Vol/Dec
1845/1.19 bln/1198